Use the information in Exhibit 10.6 to answer the following questions:
a. How many common shares did Husky sell during fiscal 2011 (excluding shares issued as part of the stock dividend and shares issued from the exercise of stock options)?
b. How much was each share sold for? How much did Husky receive after paying share issue costs?
c. What is the journal entry that Husky would have made to record the issue of shares in fiscal 2011?
d. What do you think the impact of repurchasing shares would have on the share price of the remaining outstanding shares?
e. Why do companies sell new shares to investors?